203K Rehab to Purchase a Fixer Upper or Help List Your Fixer Upper

Frisco and the Surrounding Collin County home buyers should look into the FHA 203K home loan when trying to buy that short-sale or foreclosure...refinances are elgible too!!! When trying to establish the appraised value, the value will be "subject to completion". So for example: A home that has a market value of $150k because it's at the lowest end of value of it's "like" sqr footage among comparables, may get an appraisal value on the 203K loan program for $175k when it has the most upgrades and updates for the homes similar in age and square foot in it's market, even if the sale price was $150k. Now you can use that difference in $150k sale price and expected appraised value to determine the loan to value.

Maximum LTV
• Purchase: Maximum LTV is 96.50%.
• Rate/Term Refinance: Maximum LTV is 97.75%. Maximum CLTV is 100%.
HUD's $100 Down Payment homes are also eligible for this program.

Requirements for 203K purchase or 203k refinance loans below:

• All improvements must be performed by a third-party builder. Self-Help is not allowed. (builder or contractor...must be insured contractor)
• The builder’s contract must not be signed before the 5th day after the written application.
• A 10% statutory retainer must be withheld from each advance to cover any claim notices from subcontractors or suppliers. The entire retainer, representing 10% of construction costs, will be retained for 30 days after final completion. (Subcontractors and suppliers have only 30 days after completion to notify the borrower of nonpayment claims) This money is also rolled into the loan with other costs if requested by borrower, and the 10% is calculated off the amount used for fix ups and 203k specific closing fees...EXAMPLE: IF $10,000 is the amount request for fees and fix-ups, you take 10% of $10,000, which is $1,000, and roll that into the loan. If it is not used, the 10% retainer fee will be used to pay down principle of the loan.
• Subject property must be used as the primary residence...this loan IS NOT DESIGNED FOR FLIPS OR INVESTMENT PURCHASE!

Examples of eligible home repair, replacement, or improvements under the FHA 203K are listed below, however, this is not an all-inclusive list:
• Repair/replacement of roofs, gutters and downspouts.
• Repair/replacement/upgrade of existing heating, ventilation & air conditioning systems.
• Repair/replacement of plumbing and electrical systems.
• Repair/replacement of flooring.
• Minor remodeling that does not involve structural repairs, such as kitchens
• Exterior and interior painting.
• Weatherization, including storm windows and doors, insulation, weather stripping, etc.
• Purchase and installation of appliances, including free-standing ranges, refrigerators, washers and dryers, dishwashers and microwaves.
• Improvements for accessibility for persons with disabilities.
• Lead-based paint stabilization or abatement of lead-based paint hazards.
• Repair/replacement/addition of exterior decks, patios, porches.
• Basement waterproofing.
• Replacement of window and doors and exterior wall re-siding.
Most improvements are eligible provided they add value and are permanently affixed to the foundation. Improvements to detached structures and luxury items are not allowed.
Luxury items include: Swimming pools, hot tubs, tennis courts, gazebos, barbecue pits, etc. Repair work to these items is also not allowed.

For more questions regarding the 203K loan, email Brad Lynch directly at blynch@pnlending.com or find me on Twitter at Frisco_Mortgage

Policy Changes With FHA Guidelines for Underwriting...Will It affect first time buyers?

Have we reached the top of the "mountain" in regards to tightening of underwriting guidelines in the mortgage industry in hopes to reconstruct, and specifically speaking, in FHA lending, so we can take the easier ride down the "mountain" now? Guess not. FHA announced today that there is to be changes in the MIP fee that is charged up front in an FHA mortgage transaction. It was moved originally from 1.5% to 1.75%, and they are not moving it up to 2.25%. In a loan scenario of say $150,000, your up front MIP fee, that is rolled into your loan in most cases, is $2,250 when it was 1.5%, and would have been $2,625 at the 1.75%, and now would be $3,375. That is $1,125 higher than the original amount for this scenario.

Why is FHA doing this? With the higher than normal claims rate (on default of an FHA loan, the lender is insured by a pool of funds that is built by FHA borrowers that pay this MIP fee), the pool of money has been reduced and needs to be replaced. The extra money that will be charged to the new FHA borrowers moving forward will help recoup what has been lost in the recent falling of the industry.

When do the new January 20th FHA changes become effective? The Truth About Mortgage reported, "The proposed changes will go into effect in either spring or summer, giving
lenders time to speed applications through the system under the current
rules."

Additional changes by this FHA policy change include change in FICO, seller concessions/allowable contribution to closing costs, and down payment requirements. The lowest FICO that someone using an FHA loan will be able to have and still enjoy the minimum 3.5% down payment requirement is 580. Anyone with a FICO below 580 will be required to put 10% down payment. This means ultimately, poor credit borrowers are still able to get an FHA loan with a minimal down payment of 3.5%. Presently, the seller can pay up to 6% in contribution toward the buyers costs, but that will be reduced to 3% when this goes into effect.

My look on the matter is simple. The FICO score was invented and does a very good job of providing the lender with a risk grade of a prospective borrower of money, and it's important to the overall growth and recovery of our economy to make the necessary changes to protect our nation's economy from those who are not financially ready to buy...be it because they are not disciplined enough to deserve a mortgage loan, or they have fallen on hard times and the timing is not right. This change in constriction of lending practices is comparable to the old adage "mom" would say, "this is for your own good", even though you do not like it.

First 15 Banks That HUD Accounts for High Claims Rate for FHA Loans

Yesterday, The Truth About Mortgage lists the first 15 Banks in America that have received a subpoena for a high claims rate on their FHA mortgages. These banks were recognized first because of their high number of failed loans that resulted in the FHA mortgage insurance fund to be debited.
TheTruthAboutMortgage.com quoted Inspector General Kenneth M. Donohue saying, “The goal of this initiative is to determine why there is such a high rate of defaults and claims with these companies and whether there is wrongdoing involved”.
Between the fallout list on America's renown Imploded-O-meter , and the number of banks that have been brought under indictment by the federal government, and the mergers of major banks, Americans had started to think that the surprises within this industry were over. Maybe this is a sign of, "oh contrar mo frar".
The Inspector General did say that they have no evidence in this situation of 15 targeted lenders, but if this story/investigation follows in the footsteps of other investigations that have become the long arm of the law, and literally reached into the deep pockets of America's lending establishments that were figured to have deeper roots than a 100 year old Red Wood, OH there will be casualties!
To read more on this list of banks, go directly to the source that I picked it from. http://www.thetruthaboutmortgage.com.
Below is the list of banks that were served subpoenas:
These lenders and banks are not guilty and there is no hard evidence to say that they have done anything wrong. HUD has only "smelt smoke" and is doing it's investigation to see if there truly is a "fire".
The following companies were served subpoenas today:
First Tennessee Bank N.A., Memphis, TNAlethes LLC, Lakeway, TXSecurity Atlantic Mortgage Co., Edison, NJPine State Mortgage Corporation, Atlanta, GABirmingham Bancorp Mortgage Corporation, West Bloomfield, MIAlacrity Financial Services, LLC, Southlake, TXAssurity Financial Services, LLC, Englewood, COD and R Mortgage Corporation, Farmington, MIWebster Bank, Cheshire, CTMac-Clair Mortgage Corporation, Flint, MIAmericare Investment Group, Inc., Arlington, TX1st Advantage Mortgage, Lombard, ILAmerican Sterling Bank, Independence, MOSterling National Mortgage Company Inc., Great Neck, NYDell Franklin Financial LLC, Columbia, MD

Mortgage Rates as the Economy Recovers

Moving.com continues to do an excellent job of telling the public about the daily progress of our economy and how it relates to mortgage rates...just in case the layman wanted to keep an eye on the economy in publicity that can be read and understood by anyone.
Today, bonds started out in negative fashion as the morning report in retail level sales came out not just good, but better than research would have expected. That is a good sign of recovery in our economic times...as I always say, "what's good for our economy, many times is not good for low mortgage rates". In the end for today in comparison to yesterday, rates came out a tad higher...by .125% in discount point (for the layman. That "ain't" much).

This retail level establishments report is announced by The Commerce Department. This is an important report, in case you wanted to take mental note for long term memory, as apposed to trying to add the huge number of reports that we see from day to day in the Stock Market that don't necessarily have a huge influence like this one. The retail level establishments report is important as it makes up two thirds of the U.S. economy.

Furthermore, this blog is piggy backing the recent blog post I made in the Frisco Economic Forecast a couple weeks back, in regards specifically to what rates may do in the coming 6-8 months...if you haven't read it, go read it. Remember, sitting here today with the 30 year fixed FHA and Conventional rates at 4.875%, a 7% to 7.875% rate on that price range you are holding off on today will bring a monthly payment well more than $100 a month higher at the expected higher rates than the ones today. That means you will probably settle for a lesser house in 6-8 months than you would now.

Frisco Home Buyer Breathes Easy After Close of Home

Press Release
Frisco Home Buyer Breathes Easy at Closing

Frisco, TX - August, 18 2009 - Laura was buying in a time where, so she heard, "nobody could qualify for a home unless you had $20k or $30k to put down"...that just simply was not true and she found out the EASY way.

Brett Arends of the Wallstreet Journal said, "...the closely watched Case-Shiller Home Price Index, which tracks home prices across 20 major cities nationwide, the three-year housing slump slowed sharply in April and May." The National Association of Realtors reported that the inventory of unsold homes has come down. Like me, you ask, "how is this the case if nobody could qualify for a home loan..."?

You like me, hear the nightmare stories on the news and in the paper, but major media is selling their news and over dramatizing it and Laura, one of my recent clients found that out after they brought under $10,000 cash to closing on her $166,000 home. The fact of the matter is, today's loans aren't that hard to qualify for if you have decent credit and a job, it's just that there are so few experienced Loan Officers that know how to utilize the tools and opportunities banks are offering.

Service First Mortgage strives to live up to its name as it provides a full range of mortgage financing services to its clients and the real estate community through the execution of excellent customer service via a highly knowledgeable staff and professional business environment.# # #

August Mortgage Rates Starting to Hike...Mortgage Trend Last Couple Months

In July, the national average for the 30 year fixed mortgage at one point got as low as 5.25%. Please note, from my long experience in this industry, I'm not sure where the national average is derived because it's always .125% or .25% higher than what most people in my market are seeing. None the less, I'm just using this as an illustration of how rates have moved upward in the recent months. Today, the national average is 5.47%. That is a full .25% higher than July's best rates. Going back to May, rates were at 4.75%. So, from May to August 7th, rates have increased over a half a point, or more than .5%.
If this becomes the trend, like economic forecasters have said it would eventually this year leading into 2010, by January we could see rates hit the 7% mark. If you are waiting on buying a home, or have not checked out of your refinance "procrastinator's anonymous class" yet, this would be the time. Take a look at this first chart on BankRate.com to see what it looks like in an image...for you brain type people that need pictures to subscribe to your long term memory.
On the positive side of this mortgage interest rate hike, I received my investment portfolio statement today and I made some money. Come on economy!

Frisco Mortgage Tweets on Twitter

Just in case you were wanting to have a Mortgage person on Twitter, here is a my link.
http://twitter.com/Frisco_Mortgage

Tax Credit Will NOT Be Available for Downpayment

$8000 FTHB Tax Credit Cannot be used For Downpayment As of Today
The SECRETARY of HUD made an announcement Monday and a HUD/FHA letter was published on the website Monday night stating the the $8000 could be used for upfront down payment (although the mortgage letter was vague at best)...the new DIRECTOR of HUD pulled that Mortgagee letter Thursday morning and is no longer even available on the HUD website because it appeared to violate a federal law that became effective October 1, 2008.
Here is the hyperlink to all Mortgagee Letters: Notice ML 09-15 has been pulled.
This theoretical program is now off the table and cannot NOT be used until there is a real concept of how to offer to your borrowers with real answers as to where the money might come from.
Before this happens there would need to be:
1. State agencies approved WITH MONEY for the down payment (Note that Texas IS working on this currently and we will probably (note that I said probably) have more information by June 1, 2009)
2. A Change to the HUD guidelines on the timeframe that is allowable for a loan….currently must be amortized over 10 years with no balloon.
3. A change to the IRS guidelines allowing your refund to be assigned to a state or non-profit entity.

It is also important to know that some mortgage companies in the area have already closed loans in which they allowed the buyer to use the $8000 as their down payment.
The problem is that those loans cannot now get insured or securitized. As of right now (today), buyers cannot close an FHA or Conventional loan using the $8000 as a down payment.

$8,000 Tax Credit Towards FHA Downpayment

HUD Secretary Donovan appeared at a NAR yesterday, and this is an exact excerpt of his remarks:

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

Okay - so what does that MEAN? It means that they are about to "officially" put their stamp on approving the process (and authority) on who/where/why/when a first-time homebuyer can get a LOAN for the $8000 tax credit - to be used as part of the required down payment!

THIS IS HUGE! As soon as the "official" announcement is out, we will get it to you. For now, if you are inside the transaction process of buying a home, all you can do is cross your fingers that this happens soon enough that you can take advatage of this if you choose. If you are considering on buying a house, know that this may drag on a month or two...be prepared to wait if you must.

How is the Government going to get mortgage rates down to 4%?

Too often, the media passes over a story and doesn't do a good job explaining HOW. Sometimes the "HOW" is more simple than we expect, but if so, take a minute to mention it. The question, "how is the government going to get rates down to 4%," is obvious once noted and reminded of what happened with Fannie Mae and Freddie Mac a while back.

The government bought into the conservatorship for Fannie and Freddie, so they could directly demand the Treasury to issue bonds and fund the housing agencies(CLICK HERE for previous Blog on Conservatorship). In turn, their lower costs for funds would allow for a lowering of mortgage rates. In a Blog at Marketplace.com, they make a good point about offering rates at 4%...4% doesn't offer much compensation for overhead (default, prepayment risk, and underwriting).

Anyway, the government has the conservatorship on Fannie and Freddie and has lots of money...they can make it happen.

Unbelievably Super Low Rates Today, but What About The Rest of the Week

Ultimately, yesterdays economic news was GREAT for today's rates, but there was some major volatile "others" that gave us a mid day worsening. In the end, we saw better rates today still, thanks to Bond gains like I haven't seen in a long time.
This morning the bond market was currently up 45/32, and usually we see it up on average of around 15/32 or so, so you can imagine how well it started today.
Tomorrow morning brings us the release of weekly unemployment figures from the Labor Department.
Moving.com, my favorite mortgage rate commentary site said the following. This data is not usually of much importance to the markets because it tracks only a week's worth of new claims. However, the second report of the day is only moderately important so if this data varies greatly from forecasts it could influence bonds enough to affect mortgage pricing. It is expected to show that 55 the week's last piece of economic news will be posted tomorrow morning with the release of the Conference Board's Leading Economic Indicators (LEI) for the month of November. This 10:00 AM release attempts to measure economic activity over the next three to six months. It is expected to show a sizable decline in activity, meaning that it predicts slower economic activity over the next several months. This probably will not have much of an impact on bond prices or affect mortgage rates unless it exceeds current forecasts of a 0.5% decline from October's reading. If it shows a larger decline, the bond market may move slightly higher, improving mortgage rates slightly.
8,000 new claims for benefits were filed last week.
In the end, this just means that they don't expect rates to sit this low for long, but there may be economic news in the coming weeks that return it to this rate low again soon.
My advice on your lock decision, DON'T BE GREEDY. Lock your loan now.

Builders In House Mortgage Relationships Soon To Be Changed

Builders have been a big problem over the years with dangling incentives for potential buyers to use their affiliated mortgage company. Nothing was more aggervating than to lose a loan after I have been working with a buyer for months, because some builder claims to be giving some sort of incentive to use thier affilated mortgage company. We all know what was going on behind the scenes within the mortgage industry. I have been saying for years that builders need more regulation. Looks like it finally happened.


Ken Harney made note of some changes to come, and said the following.

One of the less-discussed provisions of the Department of Housing and Urban Development's controversial rule on mortgage fees and disclosures is expected to profoundly change lenders' relationships with builders next year.
The rule, which HUD finalized last month after years of revisions, stops, and starts, will overhaul how the Real Estate Settlement Procedures Act is enforced.
Most of the debate about the 86-page rule has focused on the standardized good-faith estimate lenders will have to start providing mortgage applicants in 2010. The industry is expected to spend millions next year preparing for that part of the rule.
Several other provisions will take effect Jan. 16. What many observers called the most significant one would bar builders from offering homebuyers discounts that require them to use an affiliated mortgage, title, or settlement company. The ban will remove a competitive advantage for the joint ventures many builders have with lenders like Wells Fargo & Co., JPMorgan Chase & Co., and Countrywide Financial Corp., now a unit of Bank of America Corp. Some observers said the rule could spell the end of such partnerships.
Also on Jan. 16, lenders will be allowed to charge borrowers the average fee for certain types of settlement services purchased on their behalf, rather than the actual fee the lender paid the service provider. Some consumer advocates said this provision could help lenders skirt other consumer protection laws.
One thing that is clear: a good deal of compliance work lies ahead. "The industry has been digesting this huge, complicated, massive rule, and we're only now coming to the stage of implementation," said Sue Johnson, the president of the Real Estate Services Providers Council Inc.
Mitchel Kider, a managing member at Weiner Brodsky Sidman Kider PC, said builder-affiliated mortgage entities "worked off the synergy that exists" because discounts and incentives are available. "What this rule does is make it difficult from a business perspective to run your operation. It changes the business model of affiliations."
Brian Levy, a senior vice president and general counsel at the $1.5 billion-asset Guaranty Bank in Milwaukee, whose Shelter Mortgage Co. LLC has partnerships with builders, said, "We're going to see less production from that source and lower revenue."
It will be hard to gauge how much of the drop will come from the rule and how much will come from the recession and housing slump, Mr. Levy said. (In October, the most recent month for which data is available, sales of new homes dropped 5.3% from September and 40% from a year earlier, to an annual rate of 433,000, according to the Census Bureau.)
After mid-January, Mr. Levy said, lenders will monitor capture rates - how much of a builder's business their joint ventures get - to measure the rule's effect.
Gina Harris, the president of Builder's Affiliated Mortgage Services, a Tampa correspondent lender, said she expects to gain more business after being shut out from competing for the business of home builders that had ventures with mortgage companies.
"The joint ventures with builders may not be as profitable anymore, and they may decide that they don't want to have them," she said. "And that's probably going to be a decision that the large mortgage companies doing the joint ventures are going to have to make."
Lenders that have mortgage officers working at builders' offices may continue to work with the builders but probably will bring their loan officers in-house as part of their retail staff, Ms. Harris said.
David Stevens, a former executive at Wells and Freddie Mac and now the president and chief operating officer of the Chantilly, Va., real estate brokerage Long & Foster Cos., said the real estate law does not prohibit companies from offering "a bona fide discount," but it must be one that any competitor could match. The problem is when "the only way you get the discount to the home is to use the affiliated business."
At the peak of the housing market, builders typically told customers that they could get $10,000 of upgrades or a bigger lot if they used a mortgage or title company affiliated with the builder, he said. "They basically cross-subsidized it" with revenue from the affiliate.
William Renner, the director of single-family finance at the National Association of Home Builders, said some builder-affiliated mortgage companies may still maintain "fairly high capture rates" next year, because not all builders offered incentives in exchange for using a certain service. But he conceded that the builders with affiliated mortgage companies "would in many cases have to change their marketing agreements."
Debora Blume, a spokeswoman for Wells' home mortgage unit, said many of the builders that have ventures with the lender "do not offer financing incentives, which have actually been a recent phenomenon."
Builders form such ventures because they "want to feel confident their customers are connected with a strong, stable mortgage provider able to make sure deals close on time and meet customers' expectations," Ms. Blume said. "And customers want the convenience of one-stop shopping with mortgage, title, and insurance services under one roof."
The right to charge an average fee at closing for things like credit reports, appraisals, and recordings is meant to make it easier for lenders to adhere to the three-page good-faith estimate they will have to provide beginning in 2010. Under the rule, actual charges at the closing table will not be allowed to exceed 10% of the estimate.
(Lenders currently must provide some sort of good-faith estimate to applicants, but there is no standard form for doing so. Many lenders use a one-page document. Charges at closing can vary widely from the estimate, creating the potential for unpleasant surprises for consumers and making it harder for them to compare loan offers.)
Rebecca Borne, a policy counsel at the Center for Responsible Lending, said settlement fees "are used to calculate the finance charge under the Truth-in-Lending Act and to determine if a loan has 'high-cost' loan status, which often subjects it to more protective standards under federal and many state laws."
Allowing lenders to charge average fees creates the danger that the triggers under those laws will be hit less frequently, Ms. Borne said.
The rule forbids the use of average charges for fees that are based on the loan amount or property value, such as transfer taxes, daily interest, reserves, escrow, and insurance.
Though full Respa reform implementation is more than a year off, some lenders are anticipating the impact of the expanded good-faith estimate, which will include details about whether the interest rate can change, the existence of prepayment penalties, and total closing costs.
The new disclosures "are all going to require extensive systems work, and you have to completely reprogram your settlement systems and up-front disclosure systems, which will affect lenders, third-party service providers, and settlement companies," Mr. Stevens said. "There are definitely costs involved."
Mr. Levy said wholesale lenders are concerned about shouldering the liability of a binding good-faith estimate submitted by mortgage brokers.
Often a borrower will change the details of a loan "as they're headed towards closing" - switching from a fixed rate to an adjustable one, for example, he said.
Whether lenders will be held to their original estimate in such cases is unclear, Mr. Levy said. "Almost every loan on average has a change where it needs to be locked in a second time, and that's normal for a loan to be changed, so would you run the risk that your original GFE is wrong? Will regulators be looking at GFEs and hold ... [lenders] accountable on a compliance issue?"

100% Financing, Zero Down Payment, Texas Home Buyers

If you would like to see what your AMI (Average Median Income) per your location is to see if you qualify for this loan, please click on the following Hyper Link. Most cities in and around the Dallas Area are $68,000.
For more questions, call me at 469-450-(BRAD)2723
Median Income Eligibility Indicator site.

VA Cash Out Refinancing, 100% and Super Low Interest Rate

Did you know that VA will now allow an LTV of up to 100% on a VA cash-out refi based on the current appraised value? This is a 10% increase from the previous threshold of 90%.

Did you know that a VA cash-out refi is considered to be any current non-VA loan, (with the exception of a Texas A6 Cash-out loan), that is refinanced into a VA loan?

Please keep in mind that even though VA refers to this as a cash-out refi, it is in reality a rate/term refi and no cash back will be allowed at closing.

Down Payment Assitance and Credit Certificates

Is down payment assistance gone? No, there are plenty of areas around Dallas, Frisco, Plano, McKinney, and Irving that have available "moneys" that are qualified to use as down payment assistance with FHA loans. On Jan 1st of 2009, FHA is increasing their requirement for down payment. Don't wait if you are ready, or you'll need more down payment to qualify...you might want to save that money for fix ups when you move in. The mortgage credit certificate is available too. It is more than likely that anyone buying a home for more than $100,000 using a mortgage credit certificate will receive $2,000 cash over an above what you normally get back at tax time, for the first 8 or more years you own your home, and continue to get money for every year you own that home. THAT'S AN AWESOME DEAL. Call me lets get you set up on that.
469-450-2723
Brad

Converting Existing Home to Rental to Qualify for New Purchase

Assistant Secretary of Housing for FHA, Brian Montgomery, announced a new plan to govern against the "buy and bail" issue so prevalent in our industry today. Recently, FHA and others in the mortgage industry have observed an increasing number of homeowners who have chosen to vacate their existing principal residence and purchase a new residence. Brian suggested that this was occurring more frequently now because of rising costs in fuel, and families were targeting homes more near their place of employment, or simply that today's market has offered so many opportunities for great deals that they were taking those opportunities and bailing on their current home.
The new "temporary plan" will determine that the homeowner can afford both mortgages without rental income or that they stand in equity depth on the current home that they could easily sell it rather than default if they couldn't rent it.

There are two exceptions to this new temporary plan by FHA:

1. When a homebuyer is relocating with a new or current employer to an area recognizable to FHA as a commutable distance. In that case, the underwriter will use an executed lease agreement of no less than 12 months from day of close, and verification of a security deposit and/or first month's rent was paid to the homeowner to determine satisfactory offset of rental mortgage payment is actual.
2. The home owner has a 75% or better current Loan-to-Value in the current home determined by a residential appraisal dated no more than six MONTHS old, or by comparing the unpaid principle balance to the original sales price of the property.

FHA Down Payment Requirement Increases...Effect First Time Home Buyers in Frisco

It's been talked about and it's not necessarily brand new information, but FHA down payment requirement is going up to 3.5%. No longer will closing costs be considered as part of the amount of money they have to have involved in the transaction. They will have to have 3.5% down payment...3.5% is from the lesser of the sale price or appraised value.